How to Ensure Full Compliance when Partnering with an HR Outsourcing Company in Indonesia

How to Ensure Full Compliance when Partnering with an HR Outsourcing Company in Indonesia

  • InCorp Editorial Team
  • 27 December 2023
  • 4 minute reading time

A successful business in Indonesia means that they have the ability to adhere to stringent policies and regulations in every level of the country.

Traditionally, an employer sets up an HR department to oversee all HR compliance. However, this will take up a lot of time and resources. And by the time your HR personnel is fully-trained, non-compliance has unfortunately occurred.

So now a majority of businesses look for other more effective options: they outsource their HR functions to experts to help keep the organisation compliant.

By partnering with an HR outsourcing company in Indonesia, your company can remain up-to-date with internal and legal policies, forgoing expensive and time-consuming HR department establishment, as well as gaining the best talent through professional recruitment services.

How to Ensure Full Compliance when Partnering with an HR Outsourcing Company in Indonesia

You can get away from common pitfalls and ensure full compliance with expert help in HR outsourcing in Indonesia, here’s how:

1. Review and Update Recruitment and Hiring Procedures

In Indonesia, all your organisation’s recruitment and hiring procedures must meet the local, provincial, and federal employment and labour laws and regulations.

Partnering with an HR outsourcing company enables you to make sure that all your staff employment and onboarding procedures are fully compliant with the legislation.

2. Have an Employee Handbook in Place

When you engage an HR outsourcing company, they will assist you in creating an employee handbook.

An employee handbook consists of a compilation of all workplace policies, work conditions, procedures, and behavioural expectations.

This handbook will guide an employee’s actions in a specific workplace and the details can vary for different companies and industries.

An HR outsourcing specialist can work with you to come up with the most suitable employee handbook for your organisation.

3. Set Up Legally-Compliant Policy of Paid Leave

Employers can find it challenging to keep up with diverse and changing paid leave benefits and regulations in Indonesia. There are many requirements that an employer needs to fulfill on different levels.

Implementations of new laws, which are very common in Indonesia, can further complicate the conditions and the company’s ability to meet the requirements.

This is why you need to work with an HR outsourcing company as these professionals can provide you with effective support with the latest paid leave regulations.

4. Ensure Compliance with Salary and Wage Laws

A business owner knows that one of the most taxing tasks of HR functions is payroll calculation, especially when dealing with frequently changing wage and salary laws in Indonesia.

It can be even trickier when you have to deal with part-time and overtime hours as the laws differ for temporary workers, contractors, and full-time employees.

Fortunately, you can collaborate with an outsourced HR partner who is specialised in the salary and wage laws in Indonesia.

5. Keep Employee’s Paperwork Organised

Recruiting and onboarding employees involve a lot of forms, documents, and paperwork. This can be daunting if you don’t have a system in place to keep all employee’s documents and information organised.

This is when a professional HR outsourcing partner can help you streamline the entire process with deep knowledge, and the latest software and technology.

Cekindo as Your HR Outsourcing Partner

As one of the primary HR outsourcing providers hailing from Indonesia, Cekindo understands the impact of finding the right talent and effective management of HR functions.

These important HR processes, even though tedious, will significantly influence your future success.

Our on-demand model of HR outsourcing in Indonesia will deliver matchless HR services to clients across all industries and businesses, enabling your enterprise to grow more rapidly and effectively.

Get the best talent and HR services for your business with Cekindo. Our HR specialists will ensure you get the perfect candidate and take care of all your taxing HR functions.

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Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

According to the Indonesia’s Manpower Law employers can hire the Indonesian talents either under a temporary or a permanent contract.

  • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
  • Increase the competence of the workers by giving or encouraging job training
  • Follow the procedures of termination (Terminating an employee in Indonesia can be a long, tedious, and expensive process.)
  • Observe the working hours, holidays, and overtime regulations
  • Give mandatory employee benefits including social security and health insurance
  • Withhold only the right amount of income tax on behalf of the employees
  • Follow the wages and other benefits outlined by the law
  • Process the work permits for foreign employees

Before entering into any agreement with our clients, we sign a data protection agreement to ensure that all data are kept confidential across all involved activities.

As a leading recruitment outsourcing provider in Indonesia, InCorp offers comprehensive services. We will conduct an in-depth background check on candidates to verify references and qualifications.

Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.